August 06, 2008
WITH loyal lieutenant and finance Councillor Darryl Camilleri by his side, Mayor Col Meng smiled and said: "This is a special day".
Whether ratepayers will regard yesterday's $277million budget, the first by the amalgamated Mackay Regional Council, as special remains to be seen.
Mr Camilleri previously warned that spiralling construction costs, in particular, would result in a "tough" but "controlled" budget.
True to his word, he announced the general residential rate had increased 7.9%, or $1.42 a week, on average.
On the back of major water and sewerage infrastructure expenditure, utilities charges have been raised 12.7%, or $2 a week.
The overall total residential rate will rise $182 a year, or $3.50 a week, on average.
The average discounted water rate is now $188 a property a year and sewerage rates will rise to $486 a property.
"It has been a challenging period but, with the future in mind, we have taken a sensible approach to ensure we remain in a strong financial position," Cr Meng said.
"We have faced enormous challenges but have been conscious of the need to keep rates down against rising mortgage rates, petrol prices and construction costs."
Much was made of the $132.7million council has set aside for capital works projects in the budget.
Of the $73million earmarked for roads and drainage, more than $29million will be spent on new roads and drainage projects.
Some $57million will go towards upgrading the region's water and sewerage network.
"Getting the basics right is a focus and this budget starts that process," Cr Meng said.
Key projects for the 2008-09 financial year include:
$1.5million for flood damage projects.
$3.5million for work on the south-west Mackay drain, which will improve drainage for western residents of Planlands.
$5.5million to complete the Bluewater Quay public space on River Street.
$3million to commence construction on a new council depot.
$6.3million to commence work on the water pipeline to Sarina.
$4.7million for the new Mirani water treatment plant.
To fund capital works, council will borrow $36.4million over the current financial year bringing its projected debt to $125million by the end of 2009.
Council plans to make $8.3million in loan repayments this financial year.
"We consider that this is a responsible level of debt to have," Cr Camilleri said, "given we have had to substantially upgrade our infrastructure assets to cope with the growth achieved to date and future prospects."
Cr Camilleri said uniformity had been applied to general rates and fees and charges across the board.
He said the natural environment levy, which has jumped $5 to $25, and the roads improvement levy would apply to the whole region. "We needed to ensure council remained in a sound operating position while continuing to invest in our assets," Cr Camilleri said.
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